New York Gov. Andrew Cuomo at an event in New York City, April 2. PHOTO: SETH WENIG/ASSOCIATED PRESS
Regarding Bill Hammond’s “Cuomo Loots a Catholic Charity” (op-ed, April 10): Last month Gov. Andrew Cuomo reached a deal with Fidelis Care, a not-for-profit health plan controlled by the Roman Catholic Church, and its would-be buyer, Centene Corp. , to invest $2 billion from the sale into the state’s health-care system.
The asset being sold, valued at $3.75 billion, was built up over 20 years in which New York state taxpayer funds accounted for over 90% of Fidelis premium revenues—all while the insurer was exempt from taxation.
Without appropriate compensation for New Yorkers, the sale would effectively amount to a gift to insurers on behalf of New York’s taxpayers.
We’ve been here before. In 2002 the legislature created a framework so that Empire Blue Cross Blue Shield, a former not-for-profit health-care provider, could be sold to a for-profit company. Recognizing tax exemptions and other public benefits given by the state, it was determined that taxpayers should receive 95% of the value of the asset with funds dedicated to health care.
The state’s partnership with Fidelis has been successful and a portion of the sale’s proceeds will encourage continuation of its charitable mission. But the assets being sold are mainly state-funded Medicaid policies and substantial reserves funded through Medicaid—assets that belong to the taxpayers.
To protect New York’s taxpayers, Gov. Cuomo brought the parties together to strike an amenable solution that invests $2 billion in the preservation of high-quality health care.
The agreement will benefit the myriad New Yorkers seeking access to quality affordable health care including the more than six million children and adults served by public health insurance; it enables funding to support the Catholic Health Foundation, and does it all while protecting state taxpayers.
Robert Mujica
New York state budget director
Albany, N.Y.
